Oil End of Day Summary: Crude Falls

WTI reached US close trading lower, as economic data from the USA and China continues to draw an uncertain demand picture.

• WTI APR 24 down -0.7% at 78.19$/bbl
• HSBC forecasts an oil market deficit of above 1mbpd in Q2 and Q3, including the newly announced Russian output cuts and a partial unwinding of OPEC+ cuts starting from July.
• OPEC+ appears more unified for now after the group’s extension of the voluntary output cuts, RBC said in a note.
• The OPEC+ alliance aims at price stability in the oil market, not endless price increases, and so far it is succeeding at this, Interfax quoted Putin as saying March 5, cited by Reuters.
• Kazakhstan’s crude oil production in February fell by 0.9% on the month to 1.564mbpd, sources told Reuters, above its OPEC+ quota of 1.468mbpd.
• US crude oil inventories likely rose for a sixth straight week as winding down maintenance boosts refinery usage, according to a WSJ survey.
• Iraq's breakeven oil price is expected to exceed $90/bbl in 2024 on higher spending according to the IMF via S&P Global.
• Traders are more optimistic on higher freight rates in March, amid the emergence of more cargoes seeking VLCCs for Persian Gulf – East route, according to Platts.
• A second cargo of WTI is headed to Nigeria’s 650k b/d Dangote refinery and set to discharge March 13, Argus said.
• Rystad raised its price forecast for Brent in 2024 by $5/b to $85/b following the extension of OPEC+ cuts.